What is the difference between consolidating and refinancing
The new interest rate is the weighted average of the interest rates from the loans you are consolidating.With refinancing, you are actually paying off your federal and/or private student loans with a new private loan.
Those include the option to tie payments to income and opportunities for loan forgiveness.Should I consolidate or refinance my student loans?At U‑fi Student Loans, we get this question daily and it’s one every person with student loan debt should ask themselves.But many don’t realize students who borrowed between 20 could substantially lower the interest rate on those loans.
They may be eligible if they have good credit and refinance their loans during today’s historically low interest rate environment.
Federal loan consolidation doesn’t have a credit requirement, and it offers the benefit of a single loan bill and potentially lower payments.